Jones DAO – The Potential Piece of the Arbitrum Ecosystem
Jones DAO - The Potential Piece of the Arbitrum Ecosystem
Overview
Jones DAO is a DeFi protocol on Arbitrum that provides options derivatives investment solutions for retail investors, built very early on the ecosystem with #Realyield tokenomics mechanism.
In terms of mechanism, simply understood that users will put money into Vaults (safes), Jones’ professional financial team then invests the money in Options (low risk / moderate return). and charge fees.
To be more specifics, Dopex has a pool called SSOV, which users put their money into to provide liquidity for option orders. The user will become an option writer, who sells options to option traders. Donate option liquidity at here
However, being an option writer is not as simple as providing GLP liquidity on GMX, because investors have to choose both the strike price and the expiration time, as well as understand the future volatility of that token. Otherwise, it is very easy to lose money when you meet a more experienced option trader
Therefore, Jones DAO offers a simpler solution, as they have their own strategy to provide liquidity for dopex in a more efficient safe way for players:
- Want to invest safely but do not have time to research or monitor the market.
- Want to optimize profits from staking large projects. Get double APR with low risk.
In addition, Jones DAO also supports staking of the above assets. Currently, the project has Vaults and the corresponding assets are ETH, gOHM, DPX, rDPX. Due to the new Dapp operation, this number is still low, according to the roadmap, it will grow in the future.
Compare APY DPX between 2 platforms
- Dopex: 18.57%
- JonesDAO: 12.39%
Jones DAO’s APY will be lower than Dopex’s because of the fact that investors are giving assets to an intermediary for them to strategize to provide liquidity. The JonesDAO team will set a fee to make the platform profitable.
In addition, Jones DAO also has jAssets, which are assets generated when users put tokens into the vault, for example, putting ETH into the vault will be minted into jETH. From there, it can be further optimized by borrowing jETH or staking
Another point we need to pay attention to is that the TVL of both JonesDAO and Dopex fluctuate together:
- Token pool 2 correlated groups
- The majority of SSOV deposits come from Jones Vaults
That is, if Dopex’s TVL has strong growth in the future, Jones DAO’s TVL will also benefit from receiving a large amount of user cash flow from Dopex in search of a more effective liquidity solution.
Development team
Currently, the development team of Jones DAO is completely anonymous, but according to some studies, it can be assumed that Dopex, JonesDAO and even Plutus DAO are closely related.
For example, PlutusDAO has held most of the management rights of Dopex and Jones DAO, 56.5% and 49.7% respectively. Of course, it is not reasonable to think that they are different teams when they dare to spend a large amount of money to take control of other platforms.
Therefore, we can be somewhat confident that Jones DAO has support resources right from Dopex itself
List of Twitter accounts of the Jones DAO project team:@FroyoFren, @RafterDegen, @unicornnewborn, @0x_ivan, @shreddydefi, @JonesDAO_Intern, @GilgameshOfJPEG, @0x_ultra.
Tokenomics
Ticker: $JONES
Price: $2
Cir Supply: 4.1M
Max Supply: 10M
Cir Market Cap: 8.2M
FDV: 20M
Token Allocation
Vesting Calendar
$JONES applications:
Governance: Allow holders to vote on important decisions such as adding a new Vault, investment strategy, distribution of rewards.
VeJONES (not yet released): $JONES works under the veToken mechanism, users will lock $JONES to receive veJONES, and enjoy special benefits:
- Shared project costs. Currently, the project is collecting 20% of the profit and 2% of the user’s annual total asset fee.
- Decide the reward for jAssests pools and Vaults.
Application:
- JONES emissions will mainly be directed towards jAsset/Asset liquidity pools, to encourage deep liquidity and a strong peg.
- In addition JONES will also be used as a reward to incentivize the offering and borrowing of jAssets, JONES and stablecoins, such as MIM, FRAX or dpxUSD.
Tokenomics analysis
42% for rewards, quite high but it distributes within 7-10 years, APR is quite good, so inflation of $JONES is moderate
- Public sale: $7.75, full unlock
- Private sale: $3, cliff for 3 months and vest for 6 months
The current price ($2) is 2 times and 4 times lower than the private sale price, and the public sale price
On-chain Analysis
$JONE Staking contract: 0xb94d1959084081c5a11C460012Ab522F5a0FD756
The amount of staking increased steadily from October to the beginning of 2023
The most are from OplympusDAO treasury and 2 smart money staked half a year ago, and these wallets have not been unstaken for sale yet.
Private vesting wallet: 0xf164AcdB5dCf5F855B98f9BA8ca73CA300c63d4C
Almost all vested, only 100k $JONES token left, some wallets received 2 months ago have also been released, but there are still many wallets still holding long-term $JONES → low selling pression
Roadmap
- veJones
- jAssets Lending/Borrowing
- Gamma Neutral
- Institutionalization
You can read more here
One of the big bull cases for $JONES is probably the launch of this Gamma Neutral Q1 2023 product, which includes:
- jUSDC: stake receive 6-8% interest
- jGLP: 60% APR from Realyield
This product basically makes it possible to borrow USDC from jUSC to increase GLP leverage. This proves that Jones is wanting to encroach on GMX’s GLP-based projects (because of the fact that GMX has the most users). And this Founder is also confident that Gamma Neutral will outperform the rest (Delta Neutral).
In addition, the subsequent launch of veJONES is also interesting. Because it will give JONES holders the right to vote the rewards for Vaults. Therefore, the inflation of $JONES will be more optimal
Technical analysis
Frame D is running a triangle pattern, usually this pattern will trend 50/50 but the previous period accumulated for a long time, so the chance of reversal will be high.
Possible transaction directions:
- Wait to break the triangle, wait for the backtest then enter the order -> arrow number 1
- If you can’t break it, wait for it to adjust to the bottom edge to buy -> arrow number 2.
Summary
Jones DAO is a piece of the most interesting force on Arbitrum right now (Dopex-JonesDAO-PlutusDAO). Hopefully, through this article Barmy has provided more necessary information and fresh perspective for investors.
